The analytical overview of the main currency pairs on 2017.11.20

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17910

Open: 1.17859

% chg. over the last day: +0.21

Day's range: 1.17224 – 1.17969

52 wk range: 1.0341 – 1.2069

In the Asian trading session, aggressive sales on EUR/USD were observed. This is due to the growing political risks in Germany. The Chancellor of Germany Angela Merkel said that it was not possible to conclude the coalition talks successfully. At the moment, the bullish sentiment prevails on the trading instrument. The price is testing the "mirror" resistance of 1.17750. We do not exclude the further growth of the EUR/USD quotations. We recommend paying attention to the US government bonds yield.

News background on the 2017.11.20:

Today, the publication of important economic reports is not planned. Investors will follow the ECB head Draghi's speech.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the growth of EUR/USD.

Trading recommendations

Support levels: 1.17500, 1.16750

Resistance levels: 1.17750, 1.18500

If the price fixes above 1.17750, we recommend considering buying EUR/USD. The closest target for fixing the profit is the offer zone of 1.18200-1.18500.

Alternative option. If the price is below 1.17500, you need to look for entry points to open short positions. The target level of movement is 1.17250-1.17000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31713

Open: 1.32154

% chg. over the last day: +0.14

Day's range: 1.31858 – 1.32725

52 wk range: 1.1450 – 1.3618

At the moment there are aggressive purchases of GBP/USD. The price is testing the local resistance of 1.32600. The mark 1.32200 is already a "mirror" support. The trading instrument has the potential for further growth. In the near future, we recommend you to look for entry points to the market to open long positions. It is necessary to pay attention to the yield of government bonds.

The news background on the UK economy is calm today.

The indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram has begun to rise and moved to the positive zone, which signals an increase in GBP/USD.

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.32200, 1.31750, 1.31350

Resistance levels: 1.32600, 1.33000

If the price fixes above the local resistance of 1.32600, we recommend considering buying GBP/USD. The movement is tending to the round level of 1.33000. When following a position, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.27603

Open: 1.27645

% chg. over the last day: +0.05

Day's range: 1.27602 – 1.28018

52 wk range: 1.2059 – 1.3795

At the moment, the bearish sentiment prevails on the USD/CAD currency pair. The price is testing the local support level of 1.27600. The closest resistance is the mark of 1.27850. We do not exclude the further drop in the USD/CAD quotes. Support for the Canadian dollar is provided by a positive dynamics of the oil quotes. Nevertheless, it is recommended to open positions from the key levels.

Today, the news background on Canada's economy is calm.

The price is close to 50 MA, which is currently quite strong dynamic support.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.27600, 1.27250, 1.27000

Resistance levels: 1.27850, 1.28200

If the price fixes below the support level of 1.27600, you need to look for entry points to the market to open short positions. The movement is tending to 1.27250-1.27000.

Alternative option. If the USD/CAD overcome the level of 1.27850, we recommend considering purchases. The target movement level is 1.28200.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.874

Open: 112.120

% chg. over the last day: -0.87

Day's range: 111.887 – 112.217

52 wk range: 99.53 – 118.67

Last week the sales prevailed on USD/JPY. At the moment, the trading instrument is consolidating in the range of 112.000-112.200. Participants of the financial markets expect additional drivers. In the near future, a technical correction is not ruled out. Positions must be opened from the key levels. We recommend paying attention to the US government bonds yield.

In the Asian trading session, mixed data on the Japan's trade balance were published.

The price is below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates a correction of the USD/JPY currency pair.

Trading recommendations

Support levels: 112.000, 111.500

Resistance levels: 112.200, 112.600, 113.100

If the price fixes above the local resistance of 112.200, we expect a correction of the USD/JPY quotations. The movement is tending to 112.600.

Alternative option. If the price overcomes the round level of 112.000, it is necessary to consider selling USD/JPY. The movement is tending to 111.500.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.